Artículo Earned income defined.. Earned income defined.

id="en_US_2025_publink1000173024"> Earned income defined. Earned income is salaries, wages, tips, professional fees, and other amounts received as pay for work you actually perform. For purposes of the standard deduction, earned income also includes any part of a taxable scholarship or fellowship grant. See chapter 1 of Pub. 970 for more information on what qualifies as a scholarship or fellowship grant. Example 1. You are 16 years old and single. Your parents can claim you as a dependent on their 2025 tax return. You have interest income of $780 and wages of $150. You have no itemized deductions and use Table 10-3 to find your standard deduction. You enter $150 (earned income) on line 1, $600 ($150 + $450) on line 3, $1,350 (the larger of $600 and $1,350) on line 5, and $15,750 on line 6. Your standard deduction, on line 7a, is $1,350 (the smaller of $1,350 and $15,750). Example 2. You are a 22-year-old college student and can be claimed as a dependent on your parents' 2025 tax return. You are married filing a separate return. Your spouse doesn't itemize deductions. You have $1,500 in interest income and wages of $3,800 and no itemized deductions. You find your standard deduction by using Table 10-3 . You enter earned income, $3,800, on line 1. You add lines 1 and 2 and enter $4,250 ($3,800 + $450) on line 3. On line 5, you enter $4,250, the larger of lines 3 and 4. Because you are married filing a separate return, you enter $15,750 on line 6. On line 7a, you enter $4,250 as the standard deduction amount because it is smaller than $15,750, the amount on line 6. Example 3. You are single and can be claimed as a dependent on your parents' 2025 tax return. You are 18 years old and blind and have interest income of $1,300, wages of $2,900, and no itemized deductions. You use Table 10-3 to find the standard deduction amount. You enter wages of $2,900 on line 1, and add lines 1 and 2 and enter $3,350 ($2,900 + $450) on line 3. On line 5, you enter $3,350, the larger of lines 3 and 4. Because you are single, you enter $15,750 on line 6 and $3,350 on line 7a. This is the smaller of the amounts on lines 5 and 6. Because you checked one box in the top part of the worksheet, you enter $2,000 on line 7b, then add the amounts on lines 7a and 7b and enter the standard deduction amount of $5,350 ($3,350 + $2,000) on line 7c. Example 4. You are 18 years old and single and can be claimed as a dependent on your parents’ 2025 tax return. You have wages of $7,000, interest income of $500, a business loss of $3,000, and no itemized deductions. You use Table 10-3 to figure the standard deduction amount. You enter $4,000 ($7,000 − $3,000) on line 1, and add lines 1 and 2 and enter $4,450 ($4,000 + $450) on line 3. On line 5, you enter $4,450, the larger of lines 3 and 4, and, because you are single, $15,750 on line 6. On line 7a, you enter $4,450 as the standard deduction amount because it is smaller than $15,750, the amount on line 6. Who Should Itemize You should itemize deductions if your total deductions are more than your standard deduction amount. Also, you should itemize if you don't qualify for the standard deduction, as discussed earlier under Persons not eligible for the standard deduction . You should first figure your itemized deductions and compare that amount to your standard deduction to make sure you are using the method that gives you the greater benefit. When to itemize. You may benefit from itemizing your deductions on Schedule A (Form 1040) if you: Don't qualify for the standard deduction, Had large uninsured medical and dental expenses during the year, Paid interest and taxes on your home, Had large uninsured casualty or theft losses, Made large contributions to qualified charities, or Have total itemized deductions that are more than the standard deduction to which you are otherwise entitled. These deductions are explained in chapter 11 and in the publications listed under Useful Items , earlier. If you decide to itemize your deductions, complete Schedule A (Form 1040) and attach it to your Form 1040 or 1040-SR. Enter the amount from Schedule A (Form 1040), line 17, on Form 1040 or 1040-SR, line 12e. Electing to itemize for state tax or other purposes. Even if your itemized deductions are less than your standard deduction, you can elect to itemize deductions on your federal return rather than taking the standard deduction. You may want to do this if, for example, the tax benefit of itemizing your deductions on your state tax return is greater than the tax benefit you lose on your federal return by not taking the standard deduction. To make this election, you must check the box on line 18 of Schedule A (Form 1040). Changing your mind. If you don't itemize your deductions and later find that you should have itemized—or if you itemize your deductions and later find you shouldn't have—you can change your return by filing Form 1040-X, Amended U.S. Individual Income Tax Return. See Amended Returns and Claims for Refund in chapter 1 for more information on amended returns. Married persons who filed separate returns. You can change methods of taking deductions only if you and your spouse both make the same changes. Both of you must file a consent to assessment for any additional tax either one may owe as a result of the change. You and your spouse can use the method that gives you the lower total tax, even though one of you may pay more tax than you would have paid by using the other method. You both must use the same method of claiming deductions. If one itemizes deductions, the other should itemize because they won't qualify for the standard deduction. See Persons not eligible for the standard deduction , earlier. 2025 Standard Deduction Tables Caution If you are married filing a separate return and your spouse itemizes deductions, or if you are a dual-status alien, you can't take the standard deduction even if you were born before January 2, 1961, or are blind. Table 10-1.Standard Deduction Chart for Most People IF your filing status is... THEN your standard deduction is... Single or Married filing separately $15,750 Married filing jointly or Qualifying surviving spouse 31,500 Head of household 23,625 Don't use this chart if you were born before January 2, 1961, are blind, or if someone else can claim you (or your spouse, if filing jointly) as a dependent. Use Table 10-2 or 10-3 instead. Table 10-2.Standard Deduction Chart for People Born Before January 2, 1961, or Who Are Blind Check the correct number of boxes below. Then go to the chart. You : Born before January 2, 1961 □ Blind □ Your spouse : Born before January 2, 1961 □ Blind □ Total number of boxes checked Box IF your filing status is... AND the number in the box above is... THEN your standard deduction is... Single 1 $17,750 2 19,750 Married filing jointly 1 $33,100 2 34,700 3 36,300 4 37,900 Qualifying surviving spouse 1 $33,100 2 34,700 Married filing 1 $17,350 separately 2 18,950 3 20,550 4 22,150 Head of household 1 $25,625 2 27,625 If someone else can claim you (or your spouse, if filing jointly) as a dependent, use Table 10-3 instead. You can check the boxes for Your Spouse if your filing status is married filing separately and your spouse had no income, isn’t filing a return, and can’t be claimed as a dependent on another person’s return. Table 10-3.Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent. Check the correct number of boxes below. Then go to the worksheet. You : Born before January 2, 1961 □ Blind □ Your spouse : Born before January 2, 1961 □ Blind □ Total number of boxes checked Box 1. Enter your earned income (defined below). If none, enter -0-. 1. _____ 2. Additional amount. 2. $450 3. Add lines 1 and 2. 3. _____ 4. Minimum standard deduction. 4. $1,350 5. Enter the larger of line 3 or line 4. 5. _____ 6. Enter the amount shown below for your filing status. Single or Married filing separately—$15,750 Married filing jointly—$31,500 Head of household—$23,625 6. _____ 7. Standard deduction. a. Enter the smaller of line 5 or line 6. If born after January 1, 1961, and not blind, stop here. This is your standard deduction. Otherwise, go on to line 7b. 7a. _____ b. If born before January 2, 1961, or blind, multiply $2,000 ($1,600 if married) by the number in the box above. 7b. _____ c. Add lines 7a and 7b. This is your standard deduction for 2025. 7c. _____ Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes any taxable scholarship or fellowship grant. 11. Taxes What’s New State and local tax deduction limit increased. The overall limit on the deduction for state and local income, sales, and property taxes has increased to $40,000 ($20,000 if married filing separately). See Limitation on deduction for state and local taxes , later. Reminder No deduction for foreign taxes paid for real estate. You can no longer deduct foreign taxes you paid on real estate. Introduction This chapter discusses which taxes you can deduct if you itemize deductions on Schedule A (Form 1040). It also explains which taxes you can deduct on other schedules or forms and which taxes you can’t deduct. This chapter covers the following topics. Income taxes (federal, state, local, and foreign). General sales taxes (state and local). Real estate taxes (state, local, and foreign). Personal property taxes (state and local). Taxes and fees you can’t deduct. Use Table 11-1 as a guide to determine which taxes you can deduct. The end of the chapter contains a section that explains which forms you use to deduct different types of taxes. Business taxes. You can deduct certain taxes only if they are ordinary and necessary expenses of your trade or business or of producing income. For information on these taxes, see chapter 8, Business Expenses in Pub. 334. State or local taxes.